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Preventing Systemic Crises through Bank Transparency
Author(s) -
Hyytinen Ari,
Takalo Tuomas
Publication year - 2004
Publication title -
economic notes
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.274
H-Index - 19
eISSN - 1468-0300
pISSN - 0391-5026
DOI - 10.1111/j.0391-5026.2004.00132.x
Subject(s) - transparency (behavior) , systemic risk , business , financial system , macroprudential regulation , coordination failure , financial crisis , economics , computer science , computer security , macroeconomics
The banking system is known to be vulnerable to self‐fulfilling crises that are caused by depositors’ co‐ordination failure. We show that transparency regulation may prevent certain types of systemic crisis by eliminating the possibility of coordination failure.(J.E.L.: G21, G28) .